HRIS systems are a form of Human Resource technology that are becoming more ubiquitous throughout the world of work; especially in regards to the area of remote work, or distance based employment, HRIS tools can greatly impact the effectiveness of an office’s everyday processes by mimicking the experience of office based employment by streamlining basic and necessary activities related to the human resources department, such as recruiting, application management, absence management and benefit tracking. Indeed, such software holds a variety of useful functions that otherwise, would be done by a team of human resources specialists. However, due to the complex and ever evolving nature of technology within the modern age, the terms that describe types of software that serve to streamline and manage office processes can be varied and indeed confusing. Easily interchangeable confusing terms come from a variety of types of software, such as HCM (Human Capital Management), HRMS (Human Resource Management System), TMS (Talent Management System), ATS (Applicant Tracking System), LMS (Learning management System) as well as others. However, the most company dished out terms relating to such software usually refer to either HRIS (Human Recourse Information System), HCM and lastly HRMS. Because the last three are the most commonly misused, this article will seek to explain the specific differences between them, and how they relate to their unique rolls in office management.
- HRIS (Human Resource Information System)
A HRIS system is the most fundamental of the three types of HR solution software, and usually combines the basic abilities of a human resources department with that of effective IT functionality. This allows for a more effective employee management system done through digital means. Between the three types of tools, the specific functions related to each one can often be blurred, as many times HCM systems and HRIS systems can utilize common abilities. In general though, HRIS takes care of factors related to policies, procedures and people. More specifically, this can relate to Recruiting and posting job positions; this can be further made efficient with the use of other HR tools such as an applicant tracking system. Another function commonly used by HRIS’ include the ability to manage employee absences including those related to injury, sickness or even unauthorized leaves,
- HCM (Human Capital Management)
A HCM system is considered more comprehensive than that of a general HRIS system; in this regard, a HCM system utilizes all of the same functions that a HRIS system uses, and for this reason, HCM and HRIS systems are often used interchangeable or confused with one another. HCM technology is a more comprehensive technology than HRIS. HCM offers the capabilities of HRIS technology and adds another capability, namely for talent management; essentially, the difference is that a HCM further includes certain extra functions, such as that related to employee performance management, which allows the user to track the overall output of each worker. Furthermore, HCMs include onboarding abilities, which help the company to recruit new workers in an organized and streamlined fashion. Further features includes functions such as offering an in depth report on key metrics, as well as revealing greater depth into company policies, documentation and data.
- HRMS Technology
HRMS technology or Human Resource Management System is a technology that includes all the features offered by HRIS and HCM technology with additional payroll and TLM (Time and Labor Management) functions. No wonder, if some people think that HRMS is the most comprehensive technology for HR software solutions. HRMS technology will generally provide several capabilities, namely: all the general features provided by both HRIS and HCM technologies, as well as the ability to calculate Payroll, taxes, and more. However, perhaps the most defining and important function of an HRMS app is the ability to manage time and labor.
Indeed, the ability to control employee schedules, track project time, and other capabilities to increase employee and company productivity and profitability; with the existence of HRIS, HCM, and HRMS technology, currently employee management can be carried out more effectively and efficiently. You no longer need to ask employees to continue to print documents regarding their data because all information can be stored digitally in the system.
When choosing an HR software, you must adapt it to the needs of your company. Such as, how many employees are being managed, what core features are needed, the budget prepared, whether the device is easy to operate, and so on. By evaluating what the company needs, you can find the best HR software for your company.